Zaro Hedge: The average 30-year mortgage rate in the U.S. surged past 5% for the first time since 2011 this week, up from 4.72% last week, as the market continues to price in an aggressive monetary tightening cycle by the Federal Reserve. Inflation remains the dominant factor for policy makers, investors, and consumers.
In fact, as Jared Dillian notes, it’s time to think about the unthinkable: hyperinflation. Policy choices have fed into structural factors to create an upward producer and consumer price spiral that the Fed and other central banks will be hard-pressed to control.
Dillian, the editor of The Daily Dirtnap, joins Maggie Lake for today’s Real Vision Daily Briefing to talk about the macro picture, gold, and why Elon Musk would be good for Twitter. Read More …
Opinion: Listening to the Biden ‘don’t blame Joe for inflation’ team one could conclude that shutting down US oil supply has nothing to do with inflation, which is like saying Islam has nothing to do with terrorism. Oh wait, they say that, too.
In a recent video, economist Peter Schiff said this:
Forty years ago, we used entirely different CPI than we use today. And as far as I can tell, we are generally missing the mark by about half, meaning that if we use the 1981 CPI to measure the 2022 price increases, we probably would see a year-over-year rise of 17%, which is twice eight-and-a-half.”
That’s right folks, 40 years ago the government stripped out food and energy in calculating the Consumer Price Index (CPI) thereby tricking the public into thinking that those two metrics are just not that important.
After searching the Scriptures, the only place I can find global hyperinflation is in Revelation 6:5-6, the third judgment of the apocalypse.
I can’t help but conclude then, that global hyperinflation is a tribulation event: If it begins in the US (1st largest economy) it could easily spread to Europe (2nd largest economy) and from there all over the world.
Revelation 6:1-2: The White Horse Rider brings a false Christ who comes in peace but whose goal is to conquer (Matthew 24:5).
Revelation 6:3-4; The Red Horse Rider takes peace from the earth with wars and rumors of wars (Matthew 24:6).
Revelation 6:5-6: The Black Horse Rider carries scales with which to measure the comparative value of money and food (Matthew 24:7b).
When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.”
A quart of wheat, representing one person’s food for the day, will cost a day’s wages. But many will be forced to buy barley, a less expensive food usually used for animals. Three quarts of barley will also cost a denarius, but only the 1% will still be able to afford the luxury of oil and wine. Affordable access to economic commerce will be strictly limited.
Now the true picture of global hyperinflation emerges: a person will be forced to work a full day to have enough money to feed themselves for one day.
This economic event can happen suddenly following war and pandemic with the collapse of a major currency. When hyperinflation grips the world, food prices will rise out of control as happened in the post-World War I Weimar Republic, and in Venezuela today.
But Revelation 6:5-6 is a major catastrophe affecting the poor and middle class while the 1%, represented by oil and wine, will barely feel the pain.
According to Revelation 18 that happens at the end of the sorrows (Revelation 18:1-3)
“After these things I saw another angel coming down from heaven, having great authority, and the earth was illuminated with his glory. And he cried mightily with a loud voice, saying, “Babylon the great is fallen, is fallen, and has become a dwelling place of demons, a prison for every foul spirit, and a cage for every unclean and hated bird! For all the nations have drunk of the wine of the wrath of her fornication, the kings of the earth have committed fornication with her, and the merchants of the earth have become rich through the abundance of her luxury.”
The destruction of Babylon, the symbol for wealth excess, has come:
“The kings of the earth who committed fornication and lived luxuriously with her will weep and lament for her, when they see the smoke of her burning.”
And the enormous wealth owned by the 1% is no more:
“And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore.”
After that, the Second Coming is near.